Within the last four weeks there was a dispute
between the Nigerian Liquefied Natural Gas
company (NLNG) and the Nigerian Maritime
and Safety Agency (NIMASA) concerning
certain unpaid levies. This affected the
distribution of Liquefied Natural Gas (LNG),
commonly known as cooking gas, to depots.
Consequently, gas was unavailable in many
parts of the country during the period and its
retail price increased significantly by virtue of
the scarcity.

The dispute between NLNG and NIMASA
became public on June 21 when NIMASA
blocked NLNG cargo at the NLNG Bonny
Terminal, disallowing them from entering or
leaving the loading bay. NIMASA claimed it did
this because NLNG owed it a total of $140
million in levies. The blockade prevented the
gas company from distributing the gas by sea
to various states in the country, and so the
product was unavailable in many regions.

The federal government soon intervened in the ensuing dispute to mediate a settlement, while NLNG went to court to contest the undisclosed levies, saying that it should be exempted from paying the levies by reason of the NLNG Act.

The Managing Director of the gas company,
Babs Omotowa, said: “Our position has nothing to do with how much NLNG is being charged by a relevant agency but by the legality or otherwise of such a charge or levy in order to ensure that all our payments are made within the ambits of what is lawful. As a law abiding company, NLNG has always paid its taxes, including those due after its tax holidays since 2009. It therefore has no issues with the legally required tax payments but with levies from which it is clearly exempt by the NLNG Act ’ NLNG and NIMASA have since settled their row, and the gas company has resumed distribution.

Gas prices remain high

However, users of cooking gas in Lagos and
some other states are still getting to pay more
for the product. A 12kg cylinder of gas that
normally cost about N 3,000 now costs around
N5,000 in Lagos. Modupe Talabi, a housewife,
said she was shocked at the gas station when
she was told the price of gas had increased. “I
went to buy gas from my regular dealer, but I
was shocked when the salesperson told me the price of a 12.5kg cylinder of gas had increased from the N 2,900 it cost me a few weeks ago to N5,000,” she said. “And even the four other gas stations I went to were selling at N5,000, too. Eventually I had to call my husband to bring N 2,000 so I could buy the gas.”

More here>>> [url]telegraphng.com/2013/07/cooking-gas-prices-remain-high/[/url]